Expected Guidance on 'Simplified' Diligence Likely to Closely Follow FATF's Lead
Mar.28.2012 — MoneyLaundering.com
Washington, D.C.-based International Trade Group counsel Cari N. Stinebower speaks to MoneyLaundering.com about the guidance expected from the U.S. Treasury Department on how to ease compliance controls on certain low-risk accounts and products. The U.S. Treasury department is expected to take its queue from the Paris-based Financial Action Task Force's (FATF) call for jurisdictions to implement "simplified" customer due diligence procedures, which would allow financial institutions to relax the anti-money laundering controls commensurate with the lower risk of certain accounts and financial products.
According to the article, Stinebower said "The department is unlikely to veer from FATF's guidelines on simplified measures. U.S. officials could say that less due diligence is needed for accounts held for federal agencies, certain closed-loop prepaid products and small businesses that don't rely heavily on cash or have international ties."